Wendy's stock climbed approximately 13% to around $8.50 on Wednesday after the Financial Times reported that Nelson Peltz's Trian Partners is preparing a bid to take the fast-food chain private.

The Wendy's Company (WEN) briefly surged as much as 17% following the report. Trading in the stock was halted temporarily on Wednesday before resuming.

According to the FT, Peltz's coalition is expected to include Flynn Group, one of Wendy's largest franchisees, and Abu Dhabi-based BlueFive Capital. Flynn Group is among the largest restaurant franchise operators in the United States, running locations across multiple brands including Applebee's, Arby's, Taco Bell, and Pizza Hut. A formal bid could be submitted within weeks.

If the bid moves forward, Trian would first submit a proposal through a regulatory filing. Wendy's independent directors would then decide whether to negotiate directly with Peltz's firm or initiate a broader auction process.

Wendy's did not confirm or deny the report. The company told Barron's it "would thoroughly review any proposal submitted by Trian consistent with its fiduciary duties." Wendy's added: "The board, together with the management team, regularly reviews the company's strategic priorities and opportunities with the goal of maximizing value for all shareholders."

Trian Partners declined to comment.

A Business Under Pressure

Wendy's stock has faced sustained pressure, declining approximately 20% over the past 12 months and gaining less than 1% in 2026. Before Wednesday's rally, the stock had lost nearly half its value over the prior year. The decline reflects broader challenges across the quick-service restaurant sector, where major chains including McDonald's and Burger King owner Restaurant Brands International have reported slowing customer traffic as inflation-weary consumers reduce dining-out spending.

Last Friday, Wendy's withdrew its full-year outlook and reduced its annual dividend, citing declining customer traffic and shrinking franchisee profits.

CEO Bob Wright, who assumed the role in May, stated that management has identified five areas to drive a turnaround, including rebuilding menus and improving marketing.

Wendy's first announced a turnaround plan in late 2025, committing to close approximately 300 underperforming U.S. restaurants. By the end of Q1, the company had closed a net 174 locations as part of that restructuring.

Peltz's Long History with Wendy's

Peltz first invested in Wendy's in 2005 and has been associated with the brand for over 20 years. He served as chairman for more than 15 years before stepping down in September 2024.

In February, Peltz disclosed in a securities filing that he believed Wendy's stock was "undervalued" and was exploring ways to enhance shareholder value, including potentially taking control of the company.

Trian has previously explored a Wendy's takeover. In 2022, the firm considered acquiring the chain outright but abandoned the effort the following year.

Peltz personally owns approximately 16% of Wendy's, while Trian holds an additional 7.9%, giving the two a combined stake exceeding 24% and making them the company's largest shareholder.

Peltz has an estimated net worth of $1.6 billion. His firm manages $8.5 billion in assets and also holds stakes in Bank of New York Mellon, DuPont, and Mondelez International. Trian is widely known as an activist investor that pushes for operational and strategic changes at its portfolio companies, and a successful take-private of Wendy's would rank among the most notable restaurant leveraged buyouts in recent years.